US stocks on Friday fell as a combination of weak economic data from China and disappointing earnings hurt technology and Internet companies, while crude oil prices fell for the 10th day in a row.
Auto sales in China last month fell for the fourth month in a row and were down 13 percent from a year earlier, the latest sign its economy is under pressure.
Concerns about China’s economy and its trade dispute with the US contributed to the global stock market skid last moth. The stocks that fared the worst during that time included tech and Internet companies, as well as retailers, which all took sharp losses on Friday.
“China has played such a critical role in driving global growth,” Invesco chief global market strategist Kristina Hooper said. “[Investors] are having concerns that these tariff wars are essentially going to kick China when it’s down.”
US crude oil slipped 0.8 percent to extend its losing streak. It has fallen for five weeks in a row and tumbled 21 percent since Oct. 3. Energy companies have suffered steep losses during that time.
Weak forecasts from firms such as video game company Activision Blizzard Inc and chipmaker Skyworks Solutions Inc also contributed to Friday’s decline.
The S&P 500 on Friday dropped 25.82 points, or 0.9 percent, to 2,781.01, but rose 2.1 percent from a close of 2,723.06 on Nov. 2.
The Dow Jones Industrial Average on Friday fell 201.92 points, or 0.8 percent, to 25,989.30, but also rose 2.8 percent from 25,270.83 a week earlier.
The NASDAQ Composite on Friday sank 123.98 points, or 1.7 percent, to 7,406.90, gaining 0.7 percent from 7,356.99 on Nov. 2.
The Russell 2000 index of smaller companies on Friday gave up 28.72 points, or 1.8 percent, to 1,549.49, edging up 0.1 percent from a close of 1,547.98 a week earlier.
The US Department of Labor reported that wholesale prices in the US jumped, which Hooper said could be linked to the tariff dispute as well.
Wholesale prices last month rose by the most in six years as gas, food and chemical prices increased. The department’s wholesale price index has climbed 2.9 percent over the past year.
Activision Blizzard tumbled after its forecast for the critical holiday season fell short of analysts’ projections. The stock fell 12.4 percent to US$55.01, while Electronic Arts Inc lost 5.3 percent to US$88.89.
Major technology and Internet companies also turned lower. Apple Inc fell 1.9 percent to US$204.47 and Facebook Inc shed 2 percent to US$144.96, while Amazon.com Inc lost 2.4 percent to US$1,712.43.
US west coast utility companies tumbled as wildfires worsened in southern California, with tens of thousands of people forced to flee their homes.
Pacific Gas and Electric Co plunged 16.5 percent to US$39.92 and Edison International skidded 12.1 percent to US$61.
General Electric Co sank another 5.7 percent to US$8.58 after a JPMorgan Chase & Co analyst cut his price target on the stock from US$10 to US$6 per share.
Six of the firm’s eight divisions might be unprofitable in 2020, Stephen Tusa said.
Walt Disney Co’s net earnings were better than expected, as the entertainment giant raked in revenue from movies including Avengers: Infinity War, Incredibles 2 and Ant-Man and the Wasp. The stock gained 1.7 percent to US$118.
Online reviews company Yelp inc nosedived after it posted weak third-quarter revenue and its forecast for the fourth quarter also fell short of Wall Street’s estimates.
Part of the problem is an advertising model that is intended to encourage advertisers to try the site without signing a long-term contract, which has made its results more sensitive to short-term problems, said Yelp, whose stock fell 26.6 percent to US$31.93.
Additional reporting by staff writer
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
RSS